September 27, 2008

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Earlier today, when House Republican leadership framed its opposition to the bailout bill as it currently stands, a principal objection focused on the group ACORN, which the e-mail alert called "the scandal-tarnished 'community organizing group'" -- with scare quotes in the original.

They're referring to the Association of Community Organizations for Reform Now, a group generally allied with Democrats and derided by the GOP as corrupt, inefficient and a front-group for Democratic efforts on the ground.

In issuing the statement, House leaders are reflecting -- and also feeding -- a reaction to the provision that has exploded in the last day or more. Our colleague Ben Smith says he's gotten more than a dozen anti-ACORN e-mails in just the last few hours. The viral uprising is both organic and institutionally driven. Prominent bloggers have fed the flames and so has the Wall Street Journal editorial page; several of the e-mails sent to Smith reference a House leadership alert on the "ACORN Slush Fund" and others refer to the Journal opinion. On Thursday night, Sen. Lindsey Graham (R-S.C.) told The Crypt that his friend Sen. John McCain (R-Ariz.) opposes the provision.

"The draft bill includes a left-wing giveaway that would force taxpayers to bankroll a slush fund for a discredited ally of the Democratic Party," reads one leadership alert. "At issue is ACORN, an organization fraught with controversy for, among other scandals, its fraudulent voter registration activities on behalf of Democratic candidates. Rather than returning any profits made in the long-term from the economic rescue package, Democrats want to first reward their radical allies at ACORN for their (often illegal) help in getting Democrats elected to office."

In the end, how much of the bailout's potential profits are earmarked for ACORN? "None. Absolutely none. All funds would go to state and local governments," said Steven Adamske, spokesman for Rep. Barney Frank (D-Mass.), the chairman of the Financial Services Committee and a lead negotiator.

The opposition has grown so intense that critics refer to the measure in arcane legislative lingo. Erick Erickson titled a Friday morning blog post at RedState: "Section 105(d) of the Bailout Must Go."

Here's the relevant language:

TRANSFER OF A PERCENTAGE OF PROFITS.

DEPOSITS. Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).

USE OF DEPOSITS. Of the amount referred to in paragraph (1) 65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and 35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).

REMAINDER DEPOSITED IN THE TREASURY. All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.

State and local governments can then dole out the funds and could send money to ACORN if they so choose and if the organization's efforts meet the standards set out in the law. For their stand against the provision, Adamske tweaked House Republicans, who have long called for more state control of federal funds.

"Are they worried that the Governor of Alaska and the Mayor of Wasilla will give money to Acorn?" he asked.

Regardless, House Republicans are saying that unless the possibility of ACORN seeing any money from this bailout is eliminated, there's no deal. "Doling out favors to ACORN and other liberal special interest groups are a non-starter for House Republicans," said Boehner spokesman Kevin Smith. "If Rep. Frank wants to keep ACORN in the bill he can secure the necessary Democratic votes for passage because he'll need every one of them."

UPDATE: Here's a WSJ piece about the connections between Dems, Acorn and the Housing Trust Fund. The Crypt is now looking through the organization's 990s to see how much of their funding comes from the federal government. ACORN has several different arms so there's a lot to look through. If there are any insomniac Crypt readers out there, go to guidestar.org, get yourself a free subscription and poke around. Send me what you find or post it below.

For starters, the tax returns for the year 2005, filed in 2006, show $1,700,317 dollars in government support for Acorn Housing Corporation, Inc. Gross receipts were roughly $7,000,000.

UPDATE 2: The Acorn Institute, which does voter outreach and registration, lists $3.5 million in revenue that same year, $2.3 million of which came from government contributions. So we're at about $4 million. Not exactly breaking the treasury, but not chump change, either.

UPDATE 3: Now seems as good a time as any to note that the ACORN website says, "To maintain independence, ACORN does not accept government funding and is not tax exempt." There's probably an arm of ACORN that doesn't accept government money and isn't tax exempt, but given updates 1 and 2, let's say that's not quite the whole truth.

UPDATE 4: The issue is now moot. From readers in the comments sections, here are some of the reactions to the plan:

"Ryan-Regarding your Update 3, if you know anything about nonprofits, you know most groups have local chapters, etc, register under different tax structures. The ACORN Institute is not the same entity as ACORN. The ACORN Institute is a 501(c)3 nonprofit that does tax Federal funds and that is tax exempt. It's like the difference between Ford and the Ford Foundation. It's not that it's "not quite the whole truth." It's that YOU don't understand how these organizations are structured. I would appreciate it if you refrained from unsubstantiated speculation. This is a common socialist tactic (not a strategy) - responding to critique or investigation with "you dont understand". I have heard it before from the Obamatons."

In response, a reader says: "None of you rightwing idiots understand. No funds are being directed to ACORN or anyone else in this bailout language. ACORN is composed of several different entities, just like the NRA and any other organization that deals with community outreach. Oh, and the House Republicans WILL vote for the bailout because they know that if they don't we will be in a depression. They are coming up with this whole, "We are going to stop ACORN" thing to pacify clueless idiots like you so that when they vote for taxpayer dollars to be used they can claim a victory. A fabricated victory."

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If the guys who started this mess, want to repay their campaign debts through it, I'll stand behind the House Republicans all the way, and expect to see many more of them in January 2009!
If they wanted to fund ACORN, why not skim off some of the money that Fannie Mae & Freddie Mac gave them, and give that to ACORN, or any other of their pet groups.
Frankly, I'm disgusted with the fact that our society is built on "Credit" instead of "Savings" and has made it possible for all these "Bubbles" to blow up and threaten to burst, I SAY LET'S PATCH UP THE HOLES IN THE FINANCIAL MARKETS WITH CHEWING GUM; THEN AT LEAST WHEN WE SEE BUBBLES, THE COMMON ORDINARY TAXPAYER WILL ONLY BE FOOTING THE WAGES FOR THE WALL STREET JANITORS TO USE DETERGENTS, AND TRULY CLEAN UP THE MESS!!!

urge that all the republican congress do not agree to current bailout for the mortgage/wall street crisis with current language the democrats have in the bill where a portion of potential profits end up the hands of such disgustingly corrupt organizations like Acorn, and in the hands of trial lawyers and big labor. It is time to stop the madness and show that the republican party is trustworthy and can reform the corruption in govt - The democrats obviously do not care about the American taxpayer - pls contact your senators and representatives to urge that this special interest pork be removed from the bailout pkg.

If the guys who started this mess, want to repay their campaign debts through it, I'll stand behind the House Republicans all the way, and expect to see many more of them in January 2009!
If they wanted to fund ACORN, why not skim off some of the money that Fannie Mae & Freddie Mac gave them, and give that to ACORN, or any other of their pet groups.
Frankly, I'm disgusted with the fact that our society is built on "Credit" instead of "Savings" and has made it possible for all these "Bubbles" to blow up and threaten to burst, I SAY LET'S PATCH UP THE HOLES IN THE FINANCIAL MARKETS WITH CHEWING GUM; THEN AT LEAST WHEN WE SEE BUBBLES, THE COMMON ORDINARY TAXPAYER WILL ONLY BE FOOTING THE WAGES FOR THE WALL STREET JANITORS TO USE DETERGENTS, AND TRULY CLEAN UP THE MESS!!!

If the guys who started this mess, want to repay their campaign debts through it, I'll stand behind the House Republicans all the way, and expect to see many more of them in January 2009!
If they wanted to fund ACORN, why not skim off some of the money that Fannie Mae & Freddie Mac gave them, and give that to ACORN, or any other of their pet groups.
Frankly, I'm disgusted with the fact that our society is built on "Credit" instead of "Savings" and has made it possible for all these "Bubbles" to blow up and threaten to burst, I SAY LET'S PATCH UP THE HOLES IN THE FINANCIAL MARKETS WITH CHEWING GUM; THEN AT LEAST WHEN WE SEE BUBBLES, THE COMMON ORDINARY TAXPAYER WILL ONLY BE FOOTING THE WAGES FOR THE WALL STREET JANITORS TO USE DETERGENTS, AND TRULY CLEAN UP THE MESS!!!

Here we are on the brink of an economic disaster and the House Republican wingnuts make up a non-issue to score political points. Those guys just don't get it: We are all in a leaky ship and unless we plug the holes we will experience a depression as great as the last one that ocurred when the GOP was in office.

THIS MORNING I HEARD ON THE NEWS THAT THE CEO OF WAMU,THE BANK HAD RECEIVED $20,000,000 FOR 17 DAYS OF WORK AND THEY WANT US TO BAILOUT WALL STREET.NO BAILOUT! LET`S TAKE THE HIT NOW,AND TAKE OUR CHANCES.

Thank God someone is trying to put a stop to this one. I refuse to pay taxes if it means that Acorn gets any of my money. The audacity of these elected officials in Congress who are suppose to be looking out for all of us. Enough is enough. The name of the current bailout proposal is Troubled Asset Relief Programme, or TARP.....appropriately named. For anyone who has been hit by one of these powerful hurricanes like I have, you know that there are always a bunch of homes with a TARP on the roof....there for a very long time as the eyesore and flimsy patch it is. Not a good replacement for a good solid roof, even if it is intended to only be TEMPORARY or SHORT TERM. I say let's hire a proper roofer and get the job done right the first time.

Amazing they would have the nerve to try some junk like that in this situation, and then have the nerve to try and sluff off the truth. I heard about this on Friday from other sources. Just typical, and treacherous imo. An affront to the American people.

Steve Newman--Why do you consider potentially hundreds of millions of dollars to be a small matter? Repubs are not the ones making this up. What gives with these Dems? It is not their money, it will be borrowed from the Treasury, so it should go BACK there.

did any of you geniuses actually read the article or is this a double-blind test in people seeing what they already believe?
'how much is earmarked for ACORN?'
"NONE. ABSOLUTELY NONE." REPUBLICAN SPOKESPERSON.
get
a
grip!
nothing like ignoring the whole thrust/question of the article!

This is ridiculous. There is nothing in the bailout language about ACORN. As for the amount of money ACORN receives, compare that 1.7 million to the billions being sent to Blackwater and Halliburton and this House Republican theory sounds as absurd as it is!

I sent a note to all my representatives that any proceeds from this bail out should go to the national debt. To learn about ACORN potentially skimmy money is down right theft, and as McCain puts it Greed and excess. We should put a stop to this immediately.

This is part of the Republican "community organizers are evil" meme. The House Republicans are looking foolish while endangering our economy. God forbid they should act responsibly. There is nothing in the bailout language that gives money to ACORN. Period. End of story.

Ryan-Regarding your Update 3, if you know anything about nonprofits, you know most groups have local chapters, etc, register under different tax structures. The ACORN Institute is not the same entity as ACORN. The ACORN Institute is a 501(c)3 nonprofit that does tax Federal funds and that is tax exempt. It's like the difference between Ford and the Ford Foundation. It's not that it's "not quite the whole truth." It's that YOU don't understand how these organizations are structured. I would appreciate it if you refrained from unsubstantiated speculation.

What is the chance of administering sodium thiopental to anyone who speaks about the details of this 'crisis' and how the funds would be distributed. I absolutely refuse to continue to pay taxes if ACORN is to receive 1 penny.

When Bill Clinton eased banking restrictions, he dished out $8-billion dollars for community reinvestment loans. The money evaporated. When the financing schemes fell through, as is their wont whenever 30-million Mexican nationals buy inflated properties and default, it left banks in the lurch. Hillary Clinton counted on the loan giveaways to buy votes. Interestingly enough, had Hillary secured the nomination; she, instead of Barack Obama would preside over the bailout. So, where is that $8-bilion plus dollars? Again, the Global Initiative people took my money; they even stole my car; now they?re coming for you. Let the bubble burst. Gentlemen, I want my money back: http://theseedsof9-11.com

Ryan-Regarding your Update 3, if you know anything about nonprofits, you know most groups have local chapters, etc, register under different tax structures. The ACORN Institute is not the same entity as ACORN. The ACORN Institute is a 501(c)3 nonprofit that does tax Federal funds and that is tax exempt. It's like the difference between Ford and the Ford Foundation. It's not that it's "not quite the whole truth." It's that YOU don't understand how these organizations are structured. I would appreciate it if you refrained from unsubstantiated speculation.
This is a common socialist tactic (not a strategy) - responding to critique or investigation with "you dont understand". I have heard it before from the Obamatons.

SO SIMPLE PAY BACK TIME FOR LIBSDEMOCRATS..THIS CORPORATE HATER ORGANIZACION HELPED OBAMA TO GET WHERE HE IS AT NOW..THE WORDING IS CLEAR 20% RETURN TO LOCAL GOVERMENTS..ACORN SPECIALIZES IS GRANT REQUEST WRITTING AND SOME CALLS HERE AND THERE GARANTEE THIER GRANT FOR THAT FISCAL YR
I WORKED FOR THEM AND REALIZED HOW MANY COMMUNISTS WERER THERE AND I LEFT.

Community Disorganizers
The Consumers Rights League has issued a report explaining in great detail how the mother of all community organizers created the mortgage crisis that threatens to cost taxpayers $700 billion.

It was groups like ACORN that advocated for mortgages for minority and poor communities which led to the subprime mess in the first place. You can't have affirmative action in the credit market. It distorts the market and years later (now) it has come back to bite us in the ass. There's some irony here. Using money from this bailout to fund the community groups that caused the subprime mess in the beginning.

Any bill that gives one penny to the scum at ACORN, an organization which serves no purpose other than to commit election fraud, should be opposed. There will be hell to pay for anyone voting for such a bill. The public's opposition to this bailout is already very high. wait until they find out 20% of their money went to fund election fraud for the Democratic party.

It would perhaps be relevant to point out that Acorn is one of the few organizations that has been working to help low-income homeowners who are threatened with losing their homes as a result of the mortgage crisis driven by speculators like Countrywide. If we are going to spend hundreds of billions to rescue the mortgage companies and banks that created this crisis, a couple of million for an organization like Acorn that helps people try to keep their homes seems fair to me.

"responding to critique or investigation with "you dont understand". I have heard it before from the Obamatons." None of you rightwing idiots understand. No funds are being directed to ACORN or anyone else in this bailout language. ACORN is composed of several different entities, just like the NRA and any other organization that deals with community outreach. Oh, and the House Republicans WILL vote for the bailout because they know that if they don't we will be in a depression. They are coming up with this whole, "We are going to stop ACORN" thing to pacify clueless idiots like you so that when they vote for taxpayer dollars to be used they can claim a victory. A fabricated victory.

The only way to make this "bailout" work is to remove Schumer, Franks, Dodd from the equation and to stop cuddling to the Black Caucus, Maxine Waters. Funds should never go to ACORN or LA RAZA or any of their dependent organizations.
I hope that all who read this article will advice others that there's no other choice but to defeat the Democrats in November. If the thought of a Democrat House, Senate, White House, that they can rework our Constitution and restructure the Supreme Court at their will to make the USA a Socialist country like those in Europe, doesn't make you shake like a leaf or feel like wetting your pants, then you better get ready for the worst years of your life.
Remember these words:
"No people in history have ever survived, who thought they could protect their freedom by making themselves inoffensive to their enemies." - Dean Acheson
"All tyranny needs to gain a foothold is for people of good conscience to remain silent".
- Thomas Jefferson

this is truly obscene.I am so digusted by Frank an Dodd.Why is no one in the media making an issue that Obama was ACORN's primary lawyer in Chicago? Does anyone comment on the fact re:Franklin Raines and Jim Johnson both profiteers of Feddie and Fannie now are advisors for Obama?

If you libs want to give money to phony "community groups" and pay higher taxes why don't you just do it and leave the rest of us alone? I work for what I get and the only handout I want is YOUR hand our of MY pocket.

I hope that when this assault on USA's middle class has quieted down ( as we all know it will) that there will be calls by Obama & McCain to launch investigations into both Houses of Congress and the leadership of the Banking and Finance committees. Can impeachment procedures be brought against Dodd, Schumer, Frank? Where is Dennis Kucinich? Why has he been silent as these 3 have just saddled us, (the famous middle class) with trillions of dollars of potential debt. Where are the protests against these 3 "leaders". Why is McCain so adverse to call out these economic terrorists, the home grown ones, the "we will let America fall as long as we get ours" triumvirate of greed and incompetence. It was on their watch..It was with their blessings that groups such as Fannie and Freddie and ACORN thrived as our future was sacrificed on the altar of liberalism, the feel good for a moment, philosophy of emotion. I live in an inner city area where the population demographic has shifted from ethnic white neighborhoods to a mix between Black and Hispanic. When I first moved here rental property was plentiful and affordable. Then the papers were innundated with Homes for Sale, NO MONEY DOWN, BAD CREDIT OK, LOW, LOW INTEREST...The American Dream, right? ACORN was very active and vocal in my area. Now as I drive through this city house after house is For Sale. Bank Owned, Foreclosed signs are posted. The food pantry where I volunteer is being overun each week as people are hurting and the sign of homelessness is rearing it's ugly head. There needs to be an investigation! There needs to accountability. There needs to be a revolt. I doubt any of that will happen. If any one out there thinks Senator Obama will lead this revolt as part of his "change", that he will lead an investigation into the perpetrators of this assault on his beloved poor and middle class, who are now hurting so bad, think again. Remember these are members of his own party, his own community organizing group, who have raped these people. He will not dare challenge any one of them. There may, just may, be one who would challenge them. At least there is some hope that McCain would, as there is some history there. But Senator Obama just continues to make us feel good with his flowery word bouquets, but beware!
Out of a tiny ACORN a mighty oak grows...we need to start taking the hatchet and chopping before that oak is too large ( it may even now be too late) and leave the scalpel at home. God Bless the United States of America (and God help us!)

If the Republicans hate ACORN so much then why not stick the following in the USE OF DEPOSITS, "Deposited funds my not be disbursed to any entity that participates in, or contributes to, or is organized to influence elections or to lobby local, state or federal goverments." Or some other form of legalese that makes it harder to understand. Problem solved. Perhaps, if they were clever the Democrats should put this language in to make the Republicans shut the hell up and get on with the business of fixing this mess.

To all you blindered libturds out there....You managed to get ONE thing right in your squeals of denial.
ACORN certainly WON'T be getting a dime of these monies....Republicans, and other adults have made sure of that.

Did anyone see the sequel to the movie ?Plan 9 From Outer Space?? In ?Plan 10 From Outer Space? the space aliens replace members of the U.S. congress with dead people who have been resurrected with the use of long distance electrodes shot into the pineal and pituitary gland. They register to vote in Colorado, Missouri, Washington State, Wisconsin, Ohio, Pennsylvania, Michigan, Virginia, and Florida using the services of A.C.O.R.N. The zombies then take their seats on Capitol Hill and within a few weeks their approval ratings surpass those of President Bush.
If you want to see some of the quotes from the movie, which make more sense than what you are getting from our current congress, go to.
http://www.imdb.com/title/tt0052077/quotes

ACORN may have helped a few low income people I agree, but they're also responsible for tons of bad mortgages for low income people who could never have hoped to pay off their loans. They've also been nabbed with election fraud too. Why on earth do they even deserve one red cent of this bailout money? Add the fact that they're clearly left-wing affilliated and it's pretty clear why many don't want them to get a dime.

My friends, thanks for putting America First!!! and for not letting politics drive this decision!! If we can get a little bad press on Obama out of this, accurate or not, that would be GREAT!!! If it means the economy fails, we lose our jobs, and get throw into a depression that's fine?we need to stop the Obama momentum (which, of course, he doesn?t have) so we can get our county headed on the road to 1958, where it should be!!! God Bless America! (and no one else).

No private organiation should get any funds from this bill. The taxpayers are funding this bailout and all proceeds received from asset liquidation belong to the treasury. It's disgusting that even in a time of crisis there are those trying to wiggle their snouts in to get a piece of the action.

So the Repubs think it's fine to pay $30 million per month to Iraqi militia who where former insurgents. But if a left leaning group gets some scraps of $700 BILLION, that's a crisis? ONE CEO's golden parachute pays for all that ACORN could ever hope to get down the line...

So the Repubs think it's fine to pay $30 million per month to Iraqi militia who where former insurgents. But if a left leaning group gets some scraps of $700 BILLION, that's a crisis? ONE CEO's golden parachute pays for all that ACORN could ever hope to get down the line...

Another poster writes "no private organization should get any money"...ahh hate to break it to you, but just who do you think will be collecting tens of millions in fees for untangling this mess...Goldman Sachs and their kind...Does it suprise you that Paulson was Goldmans' former CEO and will likely go back there in January?

Obama launched his infamous, sleazy political career as one of Acorn's little nuts in Chicago-the City of Dead Voters. He probably picked up his smoking habit while handing out packs to "voters".
Taxpayers should not fund an activist/nazi thug outfit like Acorn. Let Soros, Sandler, Lewis or one of those crooks fund the rabble.

Combine the most clueless president in US history with the worst congress in US history and what do we get? Add to that a mainstream press that imploded into a screeching, worthless partisan hackarama that nobody takes serioiusly and we get massive scandals like the Mortgage subprime mess that could have been averted.
Obama is downright scary--what the hell is this crap about Missouri "truthsquads" and the radio-station muzzling (Milt Rosenberg twice), cyber-hit squads hacking into websites and e-mail accounts? This is fascism plain and simple. So is this disgusting Paulson lunge for 700 billion of OUR money.

In all of the comments posted to this thread there was a serious lack of outrage for investigating the socialist that engineered this trainwreck. The private companies of Fannie and Freddie are listed and traded on the stock exchange and such should be subject to Sarbanes/Oxley act of 2002. Enron, Worldcom, Tyco, Adelphia, etc had their top executives looking at serious jail time, what about Franklin Raines, Jamie Goerlick and Mr. Mudd? Ethics investigations and corruption charges should also be levied (to both Dems and Repubs) against influence peddling by the lobby groups from Fannie and Freddie to the top recipients like Dodd, Obama, Clinton, etc. Hang em, hang em all!